Adani Green Energy is withdrawing from two proposed wind power projects in Sri Lanka, following discussions with the country’s government on reducing the cost of power generation.

The decision comes two weeks after Colombo, Sri Lanka’s capital and seat of legislation, indicated its intention to lower the cost of power to $0.06 per kilowatt hour or under, down from the previously quoted $0.08.

The move by Adani Green Energy, part of India’s Adani Group, was attributed to the projects being “financially unviable,” according to a company spokesperson.

Sri Lanka’s review of Adani Group projects is ongoing and was prompted by accusations from the US authorities in November 2024 against the company’s founder, Gautam Adani, and other executives.

The allegations involved a bribery scheme related to Indian power supply deals, which the firm has vehemently denied.

The company told the chairman of the island nation’s investment board in a letter that “it was learned that another cabinet-appointed negotiation committee and project committee would be constituted to renegotiate the project proposal.

“This aspect was deliberated at the board … and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw,” it added in a letter, seen by Reuters.

In a recent statement, Adani Green expressed its ongoing commitment to Sri Lanka and its openness to future collaborations if the government in Colombo desires.

The projects were to be situated in the northern town of Mannar and the village of Pooneryn, including the construction of two wind farms with a combined capacity of 484MW and associated transmission lines.

Completion was scheduled for 2026, as reported by The Times of India.

The agreement for these projects was signed in May 2024 under an interim government led by President Ranil Wikremesinghe.

The Adani Group is also working on a $700m terminal project at Colombo, which is also the country’s largest port.